Despite Drops in Giving, Hope Springs Eternal
Nicole Alvarado
Petrus Intern
Despite a drop of 3.6 percent from last year’s total charitable giving, optimism continues to run high among experts and organizations. Sponsors of the Giving USA annual report believe that the level of giving in 2009 is actually good overall, as they had expected giving to be down even further. The fiscal year still saw almost $304 billion of charitable giving, which is no ignorable sum. Donations to religious organizations dropped 0.7 percent, but remain the largest share of contributions overall. Philanthropic gifts to education dropped 3.6 percent, the most out of all the categories.
Even though 2009 represents the worst recession since the Great Depression, with one of the biggest stock market drops in years and highest unemployment rates in decades, that doesn’t mean it’s time for non-profits to throw in the towel. In fact, now more than ever, it is important to double up on fundraising efforts. There are many ways to break through these challenges. Some involve branching out and thinking more outside the box, while some involve merely expanding upon strategies already in place. One thing they all have in common, though, is they have been proven to yield positive effects.
Ways to Thrive in a Rough Economy
1. Don’t stop asking
Studies consistently show that no trend is without exceptions. Even though overall giving fell in 2009, it is apparent that people still understand the importance of giving, even when times may be tough in their own lives. Despite the fact that non-profit organizations are raising less money due to the lagging economy, we know for certain they won’t raise ANY unless they ask.
“Studies have shown time and again that the number one reason people give to a particular institution is because someone asked them,” said Peter de Keratry in a 2009 Petrus E.D. article titled, 5 Keys to a Sustainable Development Program. “The more often you ask for a gift, the more money you will receive to build the capacity of your organization.” While those gifts may be smaller than in past years, they are important to the long-term viability of any organization.
2. Ask MORE people
It’s not enough to keep up the asking—it’s just as vital to branch out and tap into previously unreached constituencies. Because gifts are expected to be smaller, non-profits should plan to ask not only the donors they know they can rely on, but ones they haven’t asked before. This needs to be incorporated into the development plan, along with adequate time allocated to personal visits and other methods of solicitation. Even though individual giving has fallen, corporate giving has risen especially in regards to in-kind donations. This is an example of a market sometimes overlooked by certain non-profits with a focus on the individual or community base. Constantly be on the lookout for potential benefactors.
3. Increase presence & visibility
Establish a brand for your non-profit that makes it easily discernible. The most effective brands communicate the mission of an organization with an image and a few words. The easier it is to associate a positive, approachable image with your organization, the more likely people will be to give. More importantly than the specifics of the brand, however, is the media saturation. No matter who you are or how skilled you are, no one will know if you do not make yourself known. Increasing your presence in the minds and eyes of the public will only give you an upper hand when it comes to bringing in donations. From flyers and newspaper ads to the onslaught of new options brought on by technology (e-mail, online ads, social network platforms, etc.), utilize every outlet.
4. Commit to the best possible work
One way to set your organization apart is to give 110 percent. However, all the effort in the world won’t produce very much if there’s no strategy or organization to those efforts. The Giving USA report noted that non-profits that were more organized in promoting their mission and needs tended to fare better in the long run. It is another example of success breeding success.
Proper planning and enhancing fundraising strategies, i.e. individualized solicitation strategies or customized special events, can be an effective way of making the most out of what you have to work with. A little goes a long way, so think like a Boy Scout and be prepared.
5. It’s all about relationships
Non-profit organizations need to focus on strengthening relationships in a variety of ways. This will lead to successful solicitation efforts as the economy rebounds. There is something to be said for the subtle personal touches attached to a professional relationship. It’s easy for a giving envelope or a gratuitous e-mail to get lost in a barrage of daily correspondence, but something with the clear touch of a human hand will often resonate with a client or future patron.
Additionally, retaining already established supporters is just as important as, if not more so than, gaining new ones. Studies have shown that it is five to seven times less expensive to keep existing customers than it is to seek out new ones. As you work to add more people to your constituency, work just as hard to maintain the attention of those who already have a history of support for your organization. Losing sight of your most faithful benefactors will do your organization no favors now or in the future.
6. Stand out among the competition, engage in creative thinking
Establishing a name for your organization, or updating a previously existing image, requires more than just logic or brainpower—it requires imagination. Making your organization THE one people want to give to the most should be a priority. Some places have branched out with ideas like special, fund-a-need live auctions and personalized online advancements/requests. The influx of new ideas can set a platform of ingenuity, help bring out the best in your staff and capitalize on your organization’s potential.
Click here to read the press release from Giving USA and the Center on Philanthropy at Indiana University.
Nicole Alvarado is a recent graduate from Texas A&M with a Bachelor of Arts in Communication and Journalism. She currently resides in Austin, Texas, and is actively seeking a job in the media industry.